Keep finish upgrades separate from the true contingency?

When a finish selection comes in over its allowance, should that be tracked as an owner-requested upgrade rather than an unexpected construction overrun? I’d want the budget to show both clearly, so choosing a pricier finish doesn’t make the reserve for unforeseen work look larger or smaller than it really is.

How do you handle the full difference in the change order: material, labor, builder markup, and any schedule impact? And after each approved change, do you update the remaining contingency separately from the revised contract total? I’m curious what budget format makes that easy to follow without blurring allowance adjustments and genuinely unforeseen costs.